NASDAQ trading action was balanced overnight as the NASDAQ chopped sideways on elevated volume on and normal range. Price held the Friday range during Globex, and as we approach cash open there is a slight gap down.
The economic calendar is light today and becomes more busy as the week progresses. The US Treasury is busy today. We have 3- and 6-month T-bill auctions at 11:30am. There is a 3-year note auction at 11:30am, and a 10-year note auction at 1pm.
Last week buyers extended the rally that began two weeks ago. The Dow was particularly strong. The performance of each major US index is shown below:
On Friday the NASDAQ printed a neutral extreme up. The day began with a gap down and sellers attempting to reject us down and out of the Thursday range. However, after briefly going range extension down in the morning, a responsive bid stepped in. We then spent the rest of the afternoon in a slow algo-grind higher.
Heading into today my primary expectation is for buyers to work into the overnight inventory and close the gap up to 7175.75. This sets up a move to take out overnight high 7184.75. Look for sellers up at 7200 and two way trade to ensue.
Hypo 2 sellers press down through overnight low 7150.75 setting up a move to target 7100 before two way trade ensues.
Hypo 3 stronger buyers trade up to 7235.50 before two way trade ensues.
Volume profiles, gaps, and measured moves: